Exam 6: Trade Regulations and Industrial Policies

Figure 6.4 Japanese Market for Jetliners -Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose the lone producer of jetliners in the world is Boeing, which faces a constant marginal cost of $20 million per jetliner.How much profit will Boeing make?

The Reciprocal Trade Agreements Act of 1934 authorized

Advocates of the U.S.Trade Adjustment Assistance Program maintain that it

Assume that Russia has a comparative advantage in vodka.If the United States extends Russia the benefits of the normal-trade-relations (most-favored-nation) principle, U.S.consumer surplus decreases in the vodka market.

Safeguard protection (the escape clause) applies to permanent protection provided to home industries encountering competition from unfairly traded foreign goods.

One of the objectives of the World Trade Organization is to encourage a nondiscriminatory trade environment.

The World Trade Organization provides for all of the following EXCEPT

Figure 6.4 Japanese Market for Jetliners -Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose the lone producer of jetliners in the world is Boeing, which faces a constant marginal cost of $20 million per jetliner.How much consumer surplus will the Japanese airlines who purchase the jetliners earn from their transactions with Boeing?

According to the strategic trade policy hypothesis, a subsidy granted to domestic exporters may lead to increased export profits, which more than offset the cost of the subsidy to domestic taxpayers.

The Uruguay Round of trade negotiations lowered

The effect of antidumping duties is to impose a floor on the price of foreign goods that are imported by the home country.

In the early 1800s, southern states pressed for free trade so that they could buy cheaper foreign manufactured goods in exchange for their agricultural goods.

In 1995, the ______________ was established to administer the new global trade rules agreed in the Uruguay Round of multilateral trade negotiations.

Concerning industrial policy, the United States has nationalized its major industries in an attempt to promote global champions.

It is generally agreed that the Smoot-Hawley Act of 1930 led to improvements in U.S.exports and an overall increase in U.S.output and employment.

In 1791, Alexander Hamilton presented to Congress his famous "Report on Manufacturers," which proposed that young industries of the United States be granted import protection.Hamilton was using the ______________ to justify protection

Suppose the president lowers tariffs on radios as the result of negotiations under the trade agreements program.Radio producers in the United States can appeal under the

For the United States, the trade adjustment assistance program is founded on the rationale that if society enjoys welfare gains from the increased efficiency stemming from trade liberalization, compensation should be provided for those who are injured by import competition.

In U.S.trade law, Section 301, cases involve accusations of

The Export-Import Bank provides export-credit subsidies to U.S.producers of agricultural goods.